4 Interest-Only Loan Secrets Revealed!
As of late, more and more people are opting for “interest-only loans”. But they are actually only appropriate for a small group of borrowers. And in some cases, they can be the equivalent of “financial death”. Is an interest–only loan right for you?
Here is what you will learn in this report:
What is an interest-only mortgage?
How to know if you are a candidate for an interest-only loan
Common Interest-Only Loan Myths
How to determine if you qualify for an interest-only loan
What is an interest-only mortgage?
An interest-only mortgage is a special type of mortgage loan which allows you the option of only making payments on the interest each month. If you have an interest-only loan, you are not required to pay principal and interest every month, as you are with a traditional mortgage loan.You have the right to choose to only pay interest. Usually, the option to pay interest-only lasts for a specified period, usually 5 to 10 years.
WARNING: If you choose to pay only interest every month, you will never pay down your loan balance and your original loan amount will remain unpaid. (Example - if you obtain a $125,000 mortgage loan and pay only interest and no principal for the first 10 years, your loan balance will still be $125,000 at the end of year 10.)
How to Determine if an Interest-Only Loan is Right for YouThe first question you need to ask yourself is this: “Am I disciplined enough to pay into a quality investment when I’m not required to?” If the answer is no, an interest only loan may not be right for you.
Many borrowers opt for an interest only loan to be able to afford a home they would not otherwise be able to afford with a traditional mortgage. We advise against this practice. Only purchase a home if you can afford to pay a full interest and principal payment every month. The consequences of purchasing more home than you can afford can be serious.An interest-only loan may be right for you if you have a fluctuating income and need the flexibility of paying interest-only when you are strapped for cash. Consultants and other professionals love interest-only loans for this reason.
Additionally, an interest-only loan is great for people who want to invest the money that would have otherwise been paid toward principal into a higher-yielding investment. For this to succeed, your return on investment must exceed the mortgage interest rate on your interest-only loan.
Common Interest-Only Loan Myths
Myth #1 – Interest only loans don’t require mortgage insuranceInterest-only loans having a down payment of 20% or less require mortgage insurance in many cases. Some interest only loans are insured by the lender as opposed to a traditional mortgage insurance company. This means that you will pay for the insurance, but it will come in the form of a slightly higher interest rate. Make sure you ask the lender if, and how, your loan is being insured...
Myth #2 – Interest-Only Loans amortize faster than regular loansclick here Interest-only loans amortize no faster than a traditional loan. As a matter of fact, while they are still in their “Interest-only” stage, an Interest-Only loan doesn’t even amortize at all! There is no magic connected to amortizing an interest-only loan.
Do YOU qualify for an Interest-Only Loan?
Did you know that most people can easily qualify for an interest-only mortgage loan? Although the interest-only option is not available to everyone, it is unlikely you will be turned down for a mortgage altogether. Remember, mortgage lenders are in the business of saying YES. We don’t make money unless we say YES. Let us say YES to you today by filling out our FREE, 24 Hr Secure Online Approval Form.
It’s fast, easy and 100% secure. We will promptly let you know if you qualify for an interest-only loan. We’ll also be happy to help you decide if an interest-only loan is right for you.
P.S. – Don’t forget that we are in the business of saying YES. We can’t wait to shake your hand and tell you “Congratulations, You’re Approved!”

